TCS, OpenAI said to be in advanced talks to build AI infrastructure in India

OpenAI is reportedly in advanced discussions with Tata Consultancy Services Ltd. (TCS) to develop AI infrastructure in India, a collaboration that could benefit both the world’s leading AI company and TCS, which aspires to become a major AI-driven services provider. According to The Economic Times, OpenAI, led by Sam Altman, is negotiating to lease at least 500 MW of AI data centre capacity from TCS’s HyperVault to train and operate its AI models domestically. In return, TCS aims to leverage OpenAI’s large-language models to build Agentic AI solutions for sectors including BFSI, retail, consumer goods, and manufacturing.

A potential partnership would also signal the start of OpenAI’s Stargate initiative in India. The discussions come at a time when India has become the largest user of ChatGPT outside the US, attracting multiple tech giants to invest in AI infrastructure. Google plans a $15 billion AI hub in Vizag, Microsoft is investing $3 billion in local AI and cloud infrastructure, and Meta is putting $100 million into Reliance Industries’ AI centre in Gujarat. TCS, backed by $1 billion from TPG for HyperVault, is building a 1 GW data centre that has drawn OpenAI’s interest. Sources note that TCS intends to maintain a diversified client base rather than rely solely on OpenAI.